Take-Two braces for takeover impact with severance plan

Take-Two has filed a new severance plan in the wake of a looming EA takeover, …

As EA looms over Take-Two, the company has begun to brace for what seems like an inevitable takeover. A filing with the US Securities and Exchange Commission reveals that Take-Two has established a new severance plan to insure its employees in the wake of a takeover.

Up to six months' salary and up to 18 months' salary and bonuses will be offered to employees and executives, respectively, should a given member of the company lose his or her job as a result of a takeover.

The decision to file this severance plan comes as a result of management looking to settle potential internal disruption and ease the minds of employees uncertain about their futures with the company. At this point, though, there may be few options for Take-Two if it wants to stay out of EA's clutches.